WDAY Stock: Coinciding Levels of Price Support Are No Coincidence

I am returning to focus on Workday Inc (NASDAQ:WDAY) because there have been some new developments that need to be addressed.
If you didn’t have a chance to catch it, my January 22 report titled "Workday Stock on the Verge of a Parabolic Breakout" outlined that WDAY stock was on the verge of breaking above a significant level of price resistance. In that report, I said I believed that this would be the starting point of an epic move toward higher prices.
That level of price resistance is highlighted on the following Workday stock chart.
Chart courtesy of StockCharts.com
The level of price resistance highlighted on the above chart resided at $116.50, and this price point was the previous all-time high.
I do not use the word "was" loosely because, in February 2018, WDAY stock broke above this level of price resistance. I believe that this event is going to be the precursor to a larger move toward much higher prices.
My bullish beliefs are centered on the way stocks perform when they break above a long-standing high. In the case of Workday stock, this previous all-time high was first established in February 2014.
Four years later, the stock has returned to finally break above that high. When a stock breaks above a long-standing high, it rarely stops there. This characteristic has been known to initiate powerful moves toward higher prices.
There is no need to take my word for it; this characteristic is shared among many of the top-performing stocks.
If you want examples, look no further than Shopify Inc (NYSE:SHOP) and Facebook, Inc. (NASDAQ:FB). These two stocks are still climbing after they broke above their long-standing highs, and they haven't looked back since.
In the weeks that followed WDAY stock's breakout above resistance, the stock did appreciate, but it has returned to test the significant level of price resistance from above.
This type of price action is known as a backtest, and it reaffirms that the break above resistance was legitimate. At the same time, it establishes the previous level of resistance as a new level of price support.
The great thing about backtests is that they act like springboards. Once they are completed, stocks have a tendency to accelerate toward their new path of least resistance. This suggests that, if a stock is going to appreciate as expected, it will happen in the very near future.
The reason why I believe that such an outcome is now on the horizon for Workday stock is that the timing of the backtest was impeccable. It was able to test three levels of price support simultaneously.
These three levels of price support are highlighted on the following chart.
Chart courtesy of StockCharts.com
The three levels of price support highlighted on this WDAY stock chart are the previous all-time high, the 200-day moving average, and the uptrend line.
These three levels of price support have coincided around one price as the backtest was in progress.
The previous all-time high was a significant level of price resistance, and its significance has already been discussed.
The 200-day moving average is a metric that is used to determine whether a stock is in a bullish state versus a bearish one. Distinguishing between these two polar opposites is as easy as identifying whether the stock price is trading above or below the 200-day moving average.
Trading above it implies that a bull market is in development. Trading below it implies that a bear market is in development. Due to its significance, this metric has been known to act as a significant level of price support and price resistance.
The uptrend line is a metric that captures a progressive move toward higher prices. This progressive move contains a series of higher highs and higher lows, which is the quintessential characteristic of a bullish trend. The uptrend line that captures this trend was created by connecting the series of higher lows.
Using this trend line is much like the 200-day moving average. As long as the Workday stock price is trading above it, I can only assume that the bullish trend that began in February 2016 is still in development and that, therefore, higher prices are likely to prevail.
After breaking above the long-standing high, all three of these metrics have been tested simultaneously. The timing of this backtest is not a mere coincidence. I am interpreting it as an indication that reinforces the notion that the stock is now primed for much higher prices.

Analyst Take

I believe that much higher Workday stock prices are on the horizon. This bullish view on WDAY stock was generated by the recent break above its long-standing high and the backtest that followed.

Workday Stock Is All Set for That Epic Move Toward Higher Prices

WDAY Stock: Coinciding Levels of Price Support Are No Coincidence

I am returning to focus on Workday Inc (NASDAQ:WDAY) because there have been some new developments that need to be addressed.

If you didn’t have a chance to catch it, my January 22 report titled “Workday Stock on the Verge of a Parabolic Breakout” outlined that WDAY stock was on the verge of breaking above a significant level of price resistance. In that report, I said I believed that this would be the starting point of an epic move toward higher prices.

That level of price resistance is highlighted on the following Workday stock chart.

The level of price resistance highlighted on the above chart resided at $116.50, and this price point was the previous all-time high.

I do not use the word “was” loosely because, in February 2018, WDAY stock broke above this level of price resistance. I believe that this event is going to be the precursor to a larger move toward much higher prices.

My bullish beliefs are centered on the way stocks perform when they break above a long-standing high. In the case of Workday stock, this previous all-time high was first established in February 2014.

Four years later, the stock has returned to finally break above that high. When a stock breaks above a long-standing high, it rarely stops there. This characteristic has been known to initiate powerful moves toward higher prices.

There is no need to take my word for it; this characteristic is shared among many of the top-performing stocks.

If you want examples, look no further than Shopify Inc (NYSE:SHOP) and Facebook, Inc. (NASDAQ:FB). These two stocks are still climbing after they broke above their long-standing highs, and they haven’t looked back since.

In the weeks that followed WDAY stock’s breakout above resistance, the stock did appreciate, but it has returned to test the significant level of price resistance from above.

This type of price action is known as a backtest, and it reaffirms that the break above resistance was legitimate. At the same time, it establishes the previous level of resistance as a new level of price support.

The great thing about backtests is that they act like springboards. Once they are completed, stocks have a tendency to accelerate toward their new path of least resistance. This suggests that, if a stock is going to appreciate as expected, it will happen in the very near future.

The reason why I believe that such an outcome is now on the horizon for Workday stock is that the timing of the backtest was impeccable. It was able to test three levels of price support simultaneously.

These three levels of price support are highlighted on the following chart.

The three levels of price support highlighted on this WDAY stock chart are the previous all-time high, the 200-day moving average, and the uptrend line.

These three levels of price support have coincided around one price as the backtest was in progress.

The previous all-time high was a significant level of price resistance, and its significance has already been discussed.

The 200-day moving average is a metric that is used to determine whether a stock is in a bullish state versus a bearish one. Distinguishing between these two polar opposites is as easy as identifying whether the stock price is trading above or below the 200-day moving average.

Trading above it implies that a bull market is in development. Trading below it implies that a bear market is in development. Due to its significance, this metric has been known to act as a significant level of price support and price resistance.

The uptrend line is a metric that captures a progressive move toward higher prices. This progressive move contains a series of higher highs and higher lows, which is the quintessential characteristic of a bullish trend. The uptrend line that captures this trend was created by connecting the series of higher lows.

Using this trend line is much like the 200-day moving average. As long as the Workday stock price is trading above it, I can only assume that the bullish trend that began in February 2016 is still in development and that, therefore, higher prices are likely to prevail.

After breaking above the long-standing high, all three of these metrics have been tested simultaneously. The timing of this backtest is not a mere coincidence. I am interpreting it as an indication that reinforces the notion that the stock is now primed for much higher prices.

Analyst Take

I believe that much higher Workday stock prices are on the horizon. This bullish view on WDAY stock was generated by the recent break above its long-standing high and the backtest that followed.

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